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DAVID PETRAEUS, the US commander in Iraq, has given Congress a
markedly more upbeat assessment of the war than he did six weeks
ago, saying violence is at a four-year low and further troop
reductions are likely in the northern autumn.

Qualifying his assessment, General Petraeus said the additional
troop withdrawals might be small, potentially less than a full
3500-soldier combat brigade. He also said political goals continue
to lag behind, noting that Iraqi provincial elections scheduled for
October will be postponed by at least a month.

But the general was more optimistic on Thursday than he had been
in Washington last month. Then, an Iraqi offensive in Basra was
faltering, with Government troops stymied by Shiite militias and
violence in Shiite neighbourhoods nationwide.

This time, General Petraeus painted a picture of Iraqi troops
finally taking the lead against extremist groups and militias on
multiple battlefields, from the south in Basra to the northern city
of Mosul and Baghdad's Sadr City neighbourhood in between.

"The operation in Basra did have a shaky start, but it has since
seen enormous progress that has produced very positive tactical and
strategic results," he said. "This has been all important, because
there has been a degree of support for Prime Minister [Nouri]
al-Maliki in the subsequent period that is unparalleled during the
time that I have been in Iraq."

General Petraeus was testifying before the Senate armed services
committee, which is considering his nomination to become head of
all US forces in the Middle East. His confirmation to head US
Central Command appears likely and would mean he would replace
Admiral William Fallon, who was forced to resign amid criticism he
had undermined Bush Administration policy in the Middle East.

Also on Thursday, the US Senate approved $US165billion
($172billion) to fund the wars in Iraq and Afghanistan well into
the next presidency. The funding passed with 70 votes to 26 after
senators stripped the package of all language that authorised troop
withdrawals and sought to govern the conduct of the Iraq war, which
were in a previous version approved by the House of
Representatives.

General Petraeus's decision to recommend further US troop
reductions might have significant political implications. The move
would be likely in September, in the midst of a heated presidential
campaign in which the Republican candidate, John McCain, has staked
his candidacy on his advocacy of the 30,000-strong build-up in Iraq
last year.

■ A US helicopter strike killed eight civilians, including
two children, during an air assault near the northern Iraqi town of
Baiji, Iraqi police said.

The US military confirmed two children had "unfortunately" been
killed while travelling in a vehicle whose other occupants
"exhibited hostile intent". It did not identify the other people
killed.